Keventer buys Eicher foods unit

ACQUISITIONS AND BUYOUTS GAINS GROUND

Keventer Agro Limited (KAL) of the MKJ group, promoted by Mahendra K Jalan, has concluded the buy-out of the food division of Eicher International Limited (EIL).

Mayank Jalan, managing director of KAL, said the acquisition would be a growth engine for KAL and the group would be open for more such acquisitions in future.

Siddhartha Lal, COO of the Eicher group, said Keventer's focus on agri-related business was expected to boost the food business and ensure greater success. Ernst & Young acted as independent advisors to EIL and KAL in structuring and putting the deal together.

The foods division of EIL exported mango pulp, sesame seeds and bakery ingredients. The steady customer base of the food export division of Eicher would now be supplemented by KAL's expertise in food processing, the latter said.

KAL has supply chain for Frooti and established linkages with farmers and agents for procurement of raw materials. Its leased pulping and canning facility for mango pulp ensured top quality.

The food division of EIL would be synergistic with existing operations and add breadth and depth to existing KAL businesses besides opening up the export market, KAL said in a release. KAL was a focused food processing company and the sole franchisee of Parle Agro in eastern and north-eastern India.

KAL manufactured and marketed Frooti with over 80 per cent marketshare in the fruit beverage category in eastern and north-eastern India. KAL also manufactured and distributed Appy, Appy Fizz, the packaged drinking water Bailley and milkshake brand NJOI.

Keventer had also promoted Metro Dairy milk and ice-creams, both market leaders in their respective categories. KAL held rights for processing mango pulp at a plant in Tamil Nadu.

Keventer worked with independent agencies to provide online quality assurance during pulp production. It had a tie-up with SGS to provide quality certification to the plant.